There are certain certainties in life: death, taxes, and a bull market following a stock market crash. After the catastrophe that investors experienced in 2022, it’s not unreasonable to think that equities can maintain the momentum they’ve had since the start of the year. Even if it doesn’t, there is no doubt that a solid and sustained bull market is finally coming. There are many stocks you can choose to profit from when that happens, but others are best avoided.
Consider two stocks, one in each category. Pinterest (pin 1.01%) and Novavax (NVAX 0.66%).
Stocks to buy: Pinterest
The market is positive. Even when the economy is still struggling, it often rises in anticipation of better times. That could help lift companies like Pinterest. The social media giant is seeing lower revenue growth as economic challenges reduce advertising spending. However, the online advertising space should eventually recover as macroeconomic problems subside.
But even in difficult times, Pinterest is doing relatively well. Last year, the company’s revenue rose 9% year-over-year to bring him to $2.8 billion.Also note meta platformArguably the world’s most prominent social media company, the company did so thanks to squeezing more out of its users.
Pinterest’s average revenue per user (ARPU) was $6.36 this year, up 10% from last year. Importantly, Pinterest has 450 million monthly active users (MAUs) in 2022. Last year, we were able to put an end to the streak of MAU decline. There are many opportunities on Pinterest. For example, the company aims to improve engagement and his ARPU, especially in international markets where it lags behind the US and Canada.
Another opportunity for Pinterest is e-commerce, which many social media companies are trying to get into. But Pinterest’s advantage is the visual flavor of the platform that people go to to find ideas and inspiration. Unlike other platforms that often focus on divisive issues such as politics. Advertisers know how images can inspire consumers to buy.
Think of TV commercials that make the most of photography to sell products and attract customers. Pinterest aims to make every Pin (or photo stored on the website) available for purchase. The e-commerce market is growing rapidly and the momentum is unstoppable. That, combined with the eventual recovery of the advertising industry, will allow Pinterest to ride the next bull market. So Pinterest stock is a buy before then.
Strains to Avoid: Novavax
Novavax has been trying to establish a name for itself in the coronavirus vaccine market, but has faced some headwinds. Most notably, the biotech company ran into problems manufacturing the vaccine, delaying US approval of its candidate, Nuvaxovid. Although the company was eventually approved by many domestic and global companies, Novavax encountered another obstacle.
That is, the company hoped to attract mRNA vaccine skeptics because its product was made using more traditional methods. I had to pull it down. At the beginning of the year, he was projecting $5 billion in revenue, up from $4 billion. By the time it released its third-quarter earnings, the company had predicted that he would have $2 billion in revenue, which is a huge gap.
Novavax matches its revenue numbers in 2022, up a whopping 73% compared to 2021. But there are pitfalls. COVID-19 vaccine sales will drop like a rock this year. Also, while the booster market should persist for some time, demand for vaccines may drop by 90%. ModernaCEO Stephen Bansel.
companies such as Moderna, PfizerAlready has a solid lead in this market. The unpredictability of this space makes Novavax a risky stock to invest in. Even biotech executives agree with this, as they are unsure if the company will continue to operate as a business into next year given the funds at its disposal today.
Novavax’s other key pipeline candidate, a combination coronavirus and flu vaccine, is unlikely to save the day as it is only in Phase 1/2 clinical trials. Is this company destined for irrelevance like other biotech companies? Inovio Pharmaceuticals — Did it try and fail in the COVID-19 vaccine market? Maybe not, but the company’s prospects don’t look appealing either.
Randy Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Meta Platform CEO Mark Zuckerberg, is a member of the Motley Fool’s board of directors. Prosper Junior Bakiny has positions on Meta Platform and Pinterest. The Motley Fool has positions on and recommends Meta Platform, Pfizer and Pinterest. The Motley Fool recommends Moderna stock. The Motley Fool’s U.S. headquarters has a disclosure policy.
